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Strategies & Market Trends : Waiting for the big Kahuna

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To: Moominoid who wrote (73388)	6/27/2006 11:36:24 AM
From: Real Man	Read Replies (1) of 94695

It can, I don't know if it will. The choice is between default and raging inflation. All derivative models assume the government bonds denominated in home currency are risk free, simply because the government can print the currency to meet it's debt obligations. Obviously, this is not the case. A government can also choose to default on its bonds.

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